Here Are The Four Charts That Explain What The Protesters Are Angry About...

Earlier this week, we published a chart-essay that illustrates the extreme inequality that has developed in the US economy over the past 30 years.

The charts explain what the Wall Street protesters are angry about. They also explain why the protesters' message is resonating with the country at large.

Here are the four key points:

1. Unemployment is at the highest level since the Great Depression (with the exception of a brief blip in the early 1980s).

2. At the same time, corporate profits are at an all-time high, both in absolute dollars and as a share of the economy.

3. Wages as a percent of the economy are at an all-time low. In other words, corporate profits are at an all-time high, in part, because corporations are paying less of their revenue to employees than they ever have. There are lots of reasons for this, many of which are not the fault of the corporations. (It's a global economy now, and 2-3 billion new low-cost employees in China, India, et al, have recently entered the global workforce. This is putting pressure on wages the world over.)

4. Income and wealth inequality in the US economy is near an all-time high: The owners of the country's assets (capital) are winning, everyone else (labor) is losing.

Three charts illustrate this:

The top earners are capturing a higher share of the national income than they have anytime since the 1920s:

CEO pay and corporate profits have skyrocketed in the past 20 years, "production worker" pay has risen 4%.

After adjusting for inflation, average earnings haven't increased in 50 years.

It's worth noting that the US has been in a similar situation before: At the end of the "Roaring '20s," just before the start of the Great Depression. (See some of the charts above).

It took the country 15-20 years to pull out of that slump and fix the imbalances. But by the mid-1950s, employment, corporate profits, wages, and inequality had all returned to more normal levels. And the country enjoyed a couple of decades of relatively well-balanced prosperity. But now, everything's out of whack again.

Importantly, the inequality that has developed in the economy over the past couple of decades is not just a moral issue. It's a practical one. It is, as sociologists might say, "de-stabilizing." It leads directly to the sort of social unrest that we're seeing right now.

SEE ALSO: CHARTS: Here's What The Protesters Are So Angry About...

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LIVE COVERAGE: Trichet Promises Unlimited Liquidity, Gets Angry At German Euro Doubters

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Email Zip Trichet Promises Unlimited Liquidity, Gets Angry At German Euro Doubters Simone Foxman | Sep. 8, 2011, 9:54 AM | 1,336 | 1 A A A   x Email Article From To Email Sent! You have successfully emailed the post.

European Central Bank President Jean-Claude Trichet is giving gave a press conference today starting at 8:30 AM ET to talk about the bank's decision to keep interest rates unchanged.

What we're looking for, however, are signs that the bank's long-term outlook has fundamentally changed since July when it last raised rates, and that it could pursue more drastic, accommodative policy decisions in the future.

We'll be blogging the presser live right here on Money Game. Keep refreshing for the latest. You can also watch the live stream of Trichet's big speech on the European Commission's press page.

Auto-refresh: On | Off Sort: Oldest First | Newest First 9:54 AM | And it's over.

9:54 AM | Trichet says ECB hasn't "dictated" anything to Italy.

9:50 AM | Trichet defends interest rate hikes earlier this year.

ECB's mandate is to control prices, and losing price stability means "losing one of [EU's] greatest assets."

9:44 AM | In Greeks' best interest to "do the adjustment" to fix their financial woes.

9:40 AM | Trichet emphasizes fiscal prudence even at the expense of growth.

9:37 AM | Bank fears are "unjustified" and caused by misunderstandings about the euro system.

ECB's concept of "full allotment at fixed rate" is non-standard, and not replicated in U.S.

9:34 AM | "We are not negotiating ourselves with any government."

ECB urges credit goals and structural reforms, but countries have to act on their own.

9:28 AM | Trichet is just pissed.

Calls the question -- about German voters calling for an exit from the euro -- "very stimulating."

9:26 AM | ECB's independence is paramount.

Trichet says the bank has been successful because it has refused to do what governments have asked. In particular, notes that France, Germany, and Italy were the countries who called for weakening the Financial Stability pact a few years ago.

9:23 AM | Calls EZ problems "the worst crisis since WWII."

9:23 AM | Trichet gets angry at German euro doubters: "We were called to deliver price stability."

ECB has delivered price stability "impeccably" for the last nearly 13 years. This is better than "what has ever been obtained for the last 50 years."

9:19 AM | Ireland is "gaining credibility regularly."

Touts the country's commitment to fixing its banks and its books.

9:16 AM | Current economic situation is "exceptionally demanding," Trichet says.

9:13 AM | What's not being said here could be more important than what is.

Trichet touts ECB's commitment to stay alert and take whatever measures are necessary, but sidesteps question on what other monetary policy instruments are available to the ECB. Gestures to some "non-standard" policy measures, but doesn't go into specifics.

9:10 AM | ECB exists "to be a pillar of stability and confidence."

9:07 AM | Greece has received "a very strong message" from the ECB/IMF/EU troika.

Could he be referring to the end of talks recently? Nonetheless, Trichet believes that Greece will do what's necessary.

9:06 AM | ECB has always said: "Be very, very attentive to respect the stability of the euro pact" and "survey what other countries are doing."

Trichet says "benign neglect of governments, of markets" has led to the sovereign debt crisis.

9:04 AM | Uncertainty is "at a global level," not just in the euro area.

9:04 AM | Trichet highlights differences between staff estimates of GDP and governing council GDP projections.

Governing council does not make its own GDP predictions, which might be why estimates have not been revised downwards further.

9:00 AM | The ECB has worked very closely with the Swiss National Bank, Trichet says.

The SNB has taken "full responsibility" for their decision to put a ceiling on the value of the franc.

8:58 AM | Urges (again) rapid and full implementation of July 21 EFSF agreement.

8:57 AM | ECB says "we are never pre-committed" to monetary policy measures.

Trichet says the ECB will reevaluate measures if conditions change, but still emphasizes inflation.

8:55 AM | Talks about Italy's commitment to austerity.

Thinks austerity measures will be implemented.

8:50 AM | ECB says there's "no liquidity issue" for the banking sector.

Trichet says the bank will provide unlimited funds if banks need them. It's "not an issue," and Trichet says the ECB "is very keen" on providing liquidity when necessary.

8:48 AM | Inflation expectations are changed, too.

Inflation risks now balanced, in comparison to upside risks the ECB saw last month.

8:47 AM | Changing expectations for growth.

A month ago, considered that risks to growth were balanced. Not so anymore, Trichet says.

8:45 AM | Trichet finishes speaking.

Time for questions.

8:45 AM | Encourages EZ economies to make "substantial and comprehensive structural reforms."

Calls such reforms "fiscal consolidation."

8:44 AM | Trichet says that the swift implementation of austerity measures announced by countries struggling with sovereign debt is crucial.

8:42 AM | Trichet: "Our monetary policy remains accommodative."

8:41 AM | "Essential for banks to retain earnings" and use government outlets to maintain healthy capital base.

Touts stress tests.

8:40 AM | Monetary liquidity continues to be "ample."

8:38 AM | Trichet says that inflation remains a primary ECB concern.

Commodity prices have kept inflation high since the beginning of the year. Adds that inflation risks are "balanced."

8:36 AM | ECB cuts growth forecasts for 2011 and 2012.

8:36 AM | Man, he loves this phrase: "particularly high uncertainty."

8:35 AM | Euro area real GDP growth has decelerated.

"Temporary factors" that caused growth earlier this year are gone, but Trichet still says that the EU will grow moderately over the rest of the year. Also thinks global growth will help out the euro zone.

8:33 AM | "Particularly high uncertainty and intensified downside risks."

Trichet says financing conditions have tightened.

8:32 AM | Trichet's speaking now.

Says inflation is elevated and will stay above 2% until declining next year.

8:31 AM | The conference begins.

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Edit This » Jean-Claude Trichet Summary Jean-Claude Trichet is a French civil servant who is the current president of the European Central Bank, a position he has held since 2003. He is also a member of the Board of Directors of the Bank for International Settlements... More » Recent Posts About Jean-Claude Trichet The Three Sentences You Need To Listen For When Trichet Gives His Press Conference There's Only One Speech That Really Matters Today Trichet, Junker And Rehn Strike Cautious Note At Parliamentary Meeting Simone Foxman Writer Contact: e-mail: Subscribe to her twitter feed Ask Simone a Question Recent PostsBank Of America Just Became...The Three Sentences You Nee...Berlusconi Finally Nails It... The Water Cooler
Receive email updates on new comments!cvszEmail1 Comment 0 0 Flag as Offensive kryptic on Sep 8, 9:45 AM said: So:
1) Greece scares the heck out of him, but he thinks Ireland and Italy are moving in the right direction.
2) Banks need to cut back on bonuses and build up reserves. In fact, they need to do almost anything to build up reserves.
3) ECB will prevent a liquidity crisis
4) There's a commodities bubble, which is inflationary, but he's not about to try to burst it. Reply Join the discussion with Business Insider
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